Choosing a business broker Orange County to sell your business is not an easy task. It is up to you to find the most competent one. In this post we shall be discussing the main questions you should always ask when hiring a professional to help with the sale of your business.
What is your business valuation process?
Business valuation is so important in the sale of businesses that you must never overlook it. When you ask about the valuation process you need to take note of how the business brokers Orange County answers. Vague answers or generic approaches are red flags and you should simply walk away. Several factors are considered when pricing a business. Know why your broker recommends a certain approach over the others.
How do you protect confidentiality?
The more people know about the sale the harder it will be for you to sell your business. You should ask the broker about their policies when it comes to maintaining confidentiality. When information about the sale leaks you may end up losing employees, customers, lenders and other important people. Competitors may also exploit the opportunity to gain a competitive advantage. The sale of your business must be kept a secret at all costs.
Do you have experience selling businesses like mine?
Hiring an experienced business broker Orange County is important but does he have any experience selling businesses that are similar to yours? If the answer is no then it is not a good idea to work with him. A broker that has experience selling businesses that are similar to yours will also have qualified buyers for your business already in his contacts. He will also be able to prescreen buyers better.
What is your pricing strategy?
Relying on a business valuation alone to determine a selling price is not good. There are so many other factors that affect the price of a business. A good business broker will know how to develop realistic pricing plans in order to attract more buyers and also create deal tension that maximizes the sale price. Knowing how a broker prices a business will help gauge the ability of the broker to help you land a great deal.
These four questions are very important when hiring business brokers Orange County. The key, however, is to hire someone you can trust. Don’t simply hire because the broker has been in the business for years. Hire him because you believe he has the experience and resources needed to help sell your business.
While bringing in a business broker Orange County is important, knowing how much your business is really worth is crucial to the sale. It is only with the information on how much your business is worth that you will be able to set the right selling price and sell for maximum profit. The best news is that you don’t have to hire an appraiser for your valuation needs. Most business brokers today offer business valuation services. In this post we will be looking at the different approaches used to value a business.
Balance sheet value
A common approach used by business brokers Orange County is the balance sheet valuation method. This includes adjusted book value, liquidation value and book value. The adjusted book value is determined by revising the asset’s book value so that it reflects the cost if would take to replace the assets in the present business’ condition. This method requires that the total values be offset against the sum of liabilities.
With book value, figures from the company’s financial records will be considered a depreciated at the time of sale. This method poses some issues to the seller more so if you depreciated the assets too much to get tax advantages.
Liquidation value is the total amount that would be realized if the business assets were sold. The value here is lower because it doesn’t account for the company’s intrinsic value.
With this approach, your business broker Orange County will consider the level of earnings that your company has using the capitalization rate, discount rate or multiplier. There are many income approach methods used here. Each method requires a level of earnings as well as conversion factor in order to translate the earnings into the business value.
Here the approach sets the value based on the values of other businesses similar to yours that were sold. To set the market value the business broker must research the sale prices of similar businesses in the region. The challenge here is that finding a business that is completely similar to yours can be hard.
When performing a business valuation it is always good to question your business brokers Orange County on the approach they are using. Understand the pros and cons of each approach and how they affect the deal structure as well as the multiples. Most business brokers combine all these approaches so as to come up with a more accurate business valuation.
The first recommendation your business broker Orange County will make when you hire him is to spend a little more time getting your business ready for sale. Yes selling the business as it is will work but taking time to prepare it will help sell fast and for maximum profit. Your business broker will perform a business valuation which reveals the strengths and weaknesses that your business has. Some of the most common areas you need to fix before listing your business include the following.
Questionable or excessive tax deductions
Even where the tax deductions are legitimate, they will lower the earnings of your business. Buyers will want to know why you have too many deductions and you will need to have a good explanation for them. Scaling back on the tax deductions is one of the best things you can do when getting your business ready for sale. Your business brokers Orange County will be happy to help with this.
Pending or threatening litigations
One thing you will notice about serious buyers is that they are not interested in acquiring your baggage. This is more so when it comes to debts and legal issues. Buyers want a business that they can acquire and start running smoothly without issues getting in the way. When getting ready to sell you should consider resolving matters that can be resolved. Remember that you will be required to disclose any prior litigation to the buyers. The more litigation you can take off the table the better off you will be when selling your business.
Organize your books and records
You will not be able to evade the due diligence stage when selling your business. This is why you need to start preparing for this stage early enough. To do this you will need to gather all relevant business books and records; clean them up and organize them in a way that will win the trust of buyers. A business broker Orange County knows what buyers will be considering when evaluating your business. He will help organize your books and records the right way.
To make your business more attractive to buyers you should consider hiring the right people in the right jobs and being paid the right amounts. If you don’t plan on sticking around after the sale you need to ensure that the business can still operate smoothly in your absence. This means hiring or training a management team to take over your duties.
It is not possible to fix everything when getting your business ready for sale. However, the more issues you fix the better.
Are you getting ready to hire a business broker Orange County? The first thing you need to understand is that not every broker out there has what it takes to sell your business. Some are in it just for the money. Considering you want to sell fast and for maximum profit you need to spend a little more time vetting a business broker. In this post we shall be looking at crucial considerations you need to make before hiring a broker.
Experience selling your type of business
Experience selling businesses is very important. It is only by working with an experienced broker that you will be guaranteed he understands the ins and outs of selling a business. The important question to ask is this; does he have experience selling businesses that are similar to mine? Just because business brokers Orange County have lots of experience does not mean they will give you the support and guidance you need. To be guaranteed of getting this you need to find a broker that has experience selling businesses that are similar to yours.
Size of the team
As much as the business broker plays the biggest role in the sale of a business there are a number of other professionals you will have to bring in. The last thing you want is to have to work with multiple firms to sell your business. To avoid this issue you need a brokerage firm that offers the team you need under one roof. The professionals you need to make sure a brokerage firm has access to transaction attorneys, financial advisors, accountants and qualified business brokers.
Don’t take their word for it; listen to what recent clients are saying about a business broker Orange County. You should ask for the contacts of the business broker’s most recent clients. Listen to what the clients have to say. Know what they were satisfied and dissatisfied with when working with the business broker. Needless to say, too many negative reviews are a red flag.
How a business broker will market your business matters. Never hire a broker without first sitting down with him to understand how he will give your business maximum exposure. The right broker should not just market in your county but nationwide. He should also have a sizeable database of potential buyers in his contacts.
Last but not least you should consider the service fees. How much will he charge for the service? Will there be an upfront fee? How big of a commission will you have to pay?
The idea is to never hire a business broker without first doing a thorough background check. The more you know about him the better. Always follow your gut.
When it is time to sell your business or make a decision on selling you need to bring in an experienced business broker Orange County. The main duty of a business broker is to manage the process so that you sell on time, sell at the right price and don’t make mistakes. The broker has experience selling businesses that are similar to yours and will be able to help you close fast and for the best price. Some of the key benefits you can expect to get from working with a business broker include the following.
The hardest part when selling a business is maintaining confidentiality. You want as few people as possible to learn about the sale. The problem is when selling on your own buyers will always associate you with your business. Keeping the sale a secret will be difficult. This is where business brokers Orange County come in. They are not linked in any way with your business and use tested strategies to maintain confidentiality. For example your broker will prescreen buyers, require them to sign an NDA and disclose information about your business sparingly.
Valuate your business
Business valuation is important. It is what enables you to know how much your business is worth. It also gives you the information you need to set the most accurate asking price. Business brokers will perform a business valuation for you not only by using textbook calculations but also relying on research and considering other factors. The broker will also present several recommendations that help increase the value of your business significantly.
Recast financial statements
Business owners usually prepare financial statements for tax purposes. These statements will not cut it when selling a business. A business broker Orange County will recast your financial statements to present the real profitability and earning power of your business. Recasting considers your expenses to determine non-essentials or unnecessary business or personal expenses that are paid for by the business. The objective is to maximize financial presentation and make the business more attractive to buyers from a financial perspective.
Negotiate for sale
Business brokers are master negotiators. They have dealt with all manner of business buyers before and they know what buyers are looking for and what they think. Business brokers are thus able to put together a more desirable financial package with maximized return. What is more is that is that the broker will manage the negotiation process so that emotions don’t get in the way.
The advantages of working with business brokers are innumerable. You just need to find a broker that has a proven track record of successfully selling businesses like yours.
Most business owners find it hard to hire a business broker Orange County when getting ready to sell their businesses. This is because they believe they can sell on their own. Others feel the commission charged is not worth the trouble. The truth is selling with a business broker offers myriad benefits. Here are the top reasons you need to work with a broker.
When selling you want to keep the sale a secret. This can be hard when selling on your own. Buyers will always associate you with your business. Business brokers Orange County, on the other hand, are not directly associated with your business. They also have sold many businesses before and know how to maintain confidentiality. Some of the things brokers do to maintain confidentiality include prescreening potential buyers and requiring them to sign a non-disclosure agreement.
Selling on your own means you will rely only on the standard marketing channels such as listing sites. This is not the case with a business broker. The right broker will not only use the listing sites but also pitch your business to buyers already in his contacts. What is more is that your business will not just be promoted in Orange County but nationwide or even across the globe. Doing so leads to competing bids which enable you to sell at the best price.
It is not easy to sell a business. There is so much work that ought to be done. You have to get the business ready for sale, market it extensively, prescreen potential buyers, prepare paperwork and still keep running your business optimally. This is a lot of work. When you contact a business broker Orange County he will take over the sale. He will take care of the sale part so that you can only focus on running your business.
It is easy for emotions to cloud your judgment during negotiations. That is why leaving the business broker to negotiate for you is the best thing you can do. The broker wants to sell your business quickly and for the best price. He also has experience bringing buyers and sellers together. His input will help sell fast and for the best price.
There are so many other reasons why you should consider selling through a business broker. The most important thing to do, however, is to make sure you hire a dependable business broker. Not every broker out there has what it takes to sell your business fast and for the best price.
When it is time to sell your business the first thing you should do is hire a business broker Orange County. Find a broker that has been in the business the longest and one that has experience selling businesses that are similar to yours. The primary job of the broker will be helping you with the sale. The broker will help get the business ready for sale, manage your expectations, market extensively, prequalify potential buyers and do everything that is needed to sell fast and for the highest profit. Even after hiring a broker there are things you will have to do on your part to make the business more valuable.
Increase customer concentration
The first thing is to increase customer concentration. The issue with most small businesses is that they depend heavily on a few customers. Having a few major clients can help your business thrive but that will not cut it when selling it. Buyers know that if a major client leaves the business will take a hit. That is why they stay clear of businesses that depend on a handful of customers. Business brokers Orange County can help you diversify so that you can have more customers. Doing so will significantly increase the value of your business in the eyes of potential buyers.
Have more recurring revenue
Another thing buyers want to see is recurring revenue. Not many buyers are interested in seasonal businesses. They want businesses that thrive all year round. The key here is to diversify. A thorough business valuation will help you identify the opportunities that your business has. You can then use these opportunities to grow your business.
Hire qualified employees
The type of employees your business has will also determine its value. Some buyers are simply interested in the talent in your business. If you don’t have employees with special skills then your business will not be as valuable. You should start now by taking yourself out of the equation. Hire or train a management team. You also need to start hiring employees that are highly skilled and talented. Doing so will boost the overall value of your business.
Manage your business’ reputation
Last but not least, you have to keep an eye on the reputation of your business. A bad reputation will affect the goodwill of your business and also scare potential buyers away. Choose a business broker Orange County that can help with reputation management.
These few things will significantly boost the overall value of your business. Don’t just get up one morning and decide to sell. Take time to improve your business before listing it. Experienced business brokers Orange County will ensure that you get the best deal at the end of the day.
The primary duty of a business broker Orange County is to help you sell your business fast and for the best price. What most business owners forget is that the broker is simply a representative. He will not make the big decisions without your approval and how much the business ends up selling for will depend mostly on the work you put in. In this post we will be looking at some of the things you should do to sell your business for lots of money.
Hire a competent broker
The first step is obviously to find the most competent business brokers Orange County. Business brokers take over the sale so that you can focus more on making your business even more attractive. The broker will also help with business valuation and help you set the best asking price. It is also good to note that it is the job of the broker to maintain confidentiality, to market extensively, to prescreen buyers, to help with negotiations and also to manage your expectations. The input of the broker will increase your chances of selling for lots of money significantly.
Identify a hot market for your business
Another important thing you need to do is identify the ideal buyer for your business. You cannot market to everyone and expect to get the best offer. For you to tailor your marketing strategies to the right buyer you must identify the specific buyer that would be fit to purchase your business. The good thing is that your business broker Orange County will help with this step.
Buyers want to know that your business is a worthy investment. One of the things that do to confirm this is to check for credibility. When getting ready to sell you need to do more to build credibility. If your business has a bad reputation then now is the best time to fix that. At times your business broker can recommend rebranding to salvage your business’ reputation before selling. A bad reputation will either push buyers away or give them an upper hand during negotiations.
Build a big sales funnel
The worst mistake you can ever make when trying to sell your business for maximum profit is that of only focusing on a single buyer. You need more competing bids for you to sell for lots of money. For this to happen your business brokers Orange County need to market your business far and wide. They should not just market it in Orange County but nationwide or even worldwide.
Know when to sell
Everything will go to waste if you don’t know the best time to sell. You want to sell when your business is doing really well and when the market is in the best condition.
Hiring a business broker Orange County is the first thing you will have to do when thinking of selling your business. This is because the broker will help you get the business ready for sale by enlightening you on what to expect. The broker also has more experience and will be able to help with any challenge that gets in the way. What is more is that an experienced business broker will help sell fast and at maximum profit. With that out of the way, let’s take a look at the important things you ought to do to position your business for acquisition.
The first thing you definitely need to do is make your business more profitable. If you are not being pressured to sell, you need to take your time to increase your business’ profits. Buyers are interested in businesses that are doing really well. Business brokers Orange County can help with this step by making sure your business doesn’t rely on a single major client or one major product. They will help diversify so that you have multiple income streams. Your business broker can also help identify new opportunities that help you increase the earnings of your business as well as identify weaknesses.
Another thing you have to do is to make the transition easier. This can be achieved in many ways. For starters, you need to make sure that all your business records are available. Buyers will want to look at your documents for the last three years. You also need to get yourself out of the equation. Buyers want to know that your business will continue thriving in your absence. Train a management team to take over operations. It is also good to document your processes so that it will be easier for the new owner to take over. Reducing or simply eliminating your business debts will also make your business more attractive to buyers.
Simplify due diligence
After making an offer buyers will want to learn more about your business. This is where due diligence comes in. It is what the buyer finds in this stage that determines if he will move forward with the sale or not. Having sold many businesses before a business broker Orange County will be able to help with business valuation and also help you understand what buyers look for. You also need to gather and clean your business documents well in advance.
Identify the ideal buyer
Last but not least you need to identify your ideal buyer. Doing so will help a lot with marketing. When you know who you are targeting for the sale you will be able to tailor your marketing plans to them.
When you hire a business broker Orange County to help sell your business the first thing he will do is get your business ready. Business brokers don’t just market your company right away. They take the time to make sure that it is attractive to buyers. In this post we will be looking at some of the most important things you need to do to position your business for acquisition.
Start preparing years before the sale
The first thing you need to is to start getting your business ready for sale now. Experienced business brokers Orange County will be happy to let you know that it takes at least three years to get a business completely ready for the sale. There is a lot of work that ought to be done during this time including settling your debts, fixing your reputation and getting the business organized. If you are not being pressured by the law to sell then you need to take your time to get your business completely ready.
Focus on your strengths so that someone would want to buy it
When getting the business ready you need to focus more on the things that make your business attractive. It is only by stressing on what you excel at that you will be able to lure in the right buyers. If your business has a great platform you need to focus more on that.
Know what you want to sell
It is not all the time that business owners want to sell their business as a whole. In some cases they just want to sell part of the business in order to raise money needed for other things such as settling debts or expanding. You need to determine what you want to sell early enough. Doing so will help your business broker Orange County identify the most suitable buyers.
Identify the perfect buyer
Not every buyer out there will be ideal for your type of business. Some will want to purchase your business in order to make use of its equipment while others lack the skills and will drive the business to the ground. If you want your business to continue thriving then you need to find a buyer that has the experience and skills to run your business.
Be ready to air your dirty laundry in due diligence
Last but not least, you will not be able to fix all your flaws. You should, therefore, be ready to air your dirty laundry when the due diligence process starts. Knowing your flaws will help prepare accordingly for this stage.